nep-cul New Economics Papers
on Cultural Economics
Issue of 2018‒03‒12
three papers chosen by
Roberto Zanola
Università degli Studi del Piemonte Orientale

  1. Convergence of Cultural Traits with Time-Varying Self-Confidence in the Panebianco (2014) Model – A Corrigendum By Fabrizio Panebianco; Anja Prummer
  2. Cultural Change and the Migration Choice By Mauro Lanati
  3. Do cultural differences affect voluntary payment decisions? Evidence from guided tours By Anna Kukla-Gryz; Peter Szewczyk; Katarzyna Zagórska

  1. By: Fabrizio Panebianco (Bocconi University and IGIER); Anja Prummer (Queen Mary University of London)
    Abstract: We highlight that convergence in repeated averaging models commonly used to study cultural traits or opinion dynamics is not equivalent to convergence in Markov chain settings if transition matrices are time-varying. We then establish a new proof for the convergence of cultural traits in the model of Panebianco (2014) correcting the existing proof. The new proof provides novel insights on the long-run outcomes for inessential individuals. We close with a discussion of conditions for convergence in repeated averaging models with time-varying transition matrices.
    Keywords: Cultural transmission; Continuous cultural traits; Social networks; Opinion dynamics
    JEL: D83 D85 Z13
    Date: 2017–11–24
  2. By: Mauro Lanati
    Abstract: Cultural differences play an important role in shaping migration patterns. The conventional proxies for cross country cultural differences - such as common language, ethnicity, genetic traits or religion - implicitly assume that cultural proximity between two countries is constant over time and symmetric, which is far from realistic. This paper proposes a tractable model for international migration which explicitly allows for the time varying and asymmetric dimensions of cultural proximity. Similarly to Disdier et al (2010) we assume that the evolution of bilateral cultural affinity over time is reflected in the intensity of bilateral trade in cultural goods. Our empirical framework includes a comprehensive set of high dimensional fixed effects which enables for the identification of the impact of cultural proximity on migration over and beyond the effect of pre-existing cultural and historical ties. The results are robust across different econometric techniques and suggest that positive changes in cultural relationships over time foster bilateral migration.
    Keywords: Migration, Trade in Cultural Goods, Gravity Model
    JEL: F16 F22 Z10
    Date: 2018–02–26
  3. By: Anna Kukla-Gryz (Faculty of Economic Sciences, University of Warsaw; ; Group for Research in Applied Economics (GRAPE)); Peter Szewczyk (Faculty of Economic Sciences, University of Warsaw; ; Group for Research in Applied Economics (GRAPE)); Katarzyna Zagórska (Faculty of Economic Sciences, University of Warsaw; ; Group for Research in Applied Economics (GRAPE))
    Abstract: We provide an empirical explanation for cross-country differences in the size of the voluntary payments made for a good offered in a Pay-What-You-Want payment scheme. Using a sample of almost 500 international travellers from 50 nations participating in a guided tour that uses a voluntary payment method, we analyse the relationship between the size of the average voluntary payments and national values defined by Hofstede’s Cultural Dimensions (1983) as well as selected values from the World Value Survey (WVS). Strong correlations between certain cultural values and average payment sizes are found.
    Keywords: pay what you want, cultural dimensions, pricing strategies, participative pricing
    JEL: D12 D91 Z19
    Date: 2018

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